The online storefront was to be integrated into future versions of the Windows operating system and hardware products such as the upcoming Xbox One games console.

Microsoft was working on the venture under the codename Project Brazil, and planned to subsidise it with advertising revenue from the Bing search engine.

The plug was pulled on the project in the early stages for reasons that were not disclosed, but Microsoft did go on to launch its own-branded apps store to coincide with Windows 8 and the Windows Phone mobile OS.

Microsoft will release the first major update to its latest desktop operating system, Windows 8.1, this month.